At the 2025 Berkshire shareholder meeting, the investment guru still delivered quotable quotes with humor, but his words also revealed concerns about the future.
He discussed topics such as trade, real estate, and cash reserves. Let's take a look at what Buffett said this time and what signals may be hidden behind them.
Are tariffs really a big problem?
Buffett spoke frankly about tariffs, stating that trade and tariffs are practically acts of war!
He believes the U.S. should do good business with other countries, leveraging each other's strengths rather than fighting with one another.
Berkshire's business covers insurance, energy, railroads, and manufacturing; the uncertainty surrounding tariffs has made the company uneasy, and the specific impacts are still unclear.
Buffett's words also remind us that trade wars are not to be taken lightly; the consequences may be severe.
Would Buffett be scared if the market dropped by 50%?
Recently, the S&P 500 index dropped nearly 20%, almost entering a bear market. But Buffett remained calm, stating that the fluctuations over the past 30 to 45 days are not significant.
He reflected on the past 60 years, noting that Berkshire's stock price has halved three times, but the company's fundamentals have never been in trouble.
Buffett said, 'If Berkshire's stock price drops by 50%, I would see it as an opportunity to buy cheap, not as something to fear.'
Where does this confidence come from? Just look at his cash reserves of $347.7 billion to understand; having money allows for opportunistic buying during a crisis.
How serious is the U.S. deficit problem?
When discussing the $36 trillion national debt hole, Buffett spoke seriously: 'The current level of deficit is definitely unsustainable in the long run.'
Although he did not specify when there would be issues, he emphasized that it cannot be dragged on forever.
Reducing government spending is a must, but unfortunately, Congress seems to be taking no action.
Buffett's words sound like a warning bell; the market may face a significant fluctuation, with risks and opportunities coexisting. Now is the time for cash to reign, waiting patiently.
However, he also mentioned that this is not solely an American problem; the world is facing similar challenges.
Although he discussed many issues, he still has confidence in the resilience of the U.S. economy.
He said that the U.S. has endured major events such as the Great Depression, world wars, and the emergence of nuclear weapons, and has come through them all; today's issues are nothing in comparison.
He even joked, 'If I hadn't been born yet, I would negotiate in the womb to ensure I was born in the U.S.!'
Why is Buffett hoarding such a large amount of cash?
Buffett's Berkshire continued to sell assets in the first quarter of 2025, exchanging them for more cash.
Now, their cash reserves have reached $347.7 billion, setting a historic high!
This is no small amount; it is equivalent to the GDP of some countries for a year.
He spent 2.9 billion on stock buybacks in 2024, far less than the 27 billion in 2021.
Buffett is clearly holding back a major move, waiting for a big opportunity.
He stated that good investment opportunities are not available every day, and random investments will only harm shareholders. He expects significant moves in the next five years, as Berkshire patiently waits for the best timing.
Will 2027 be a low point in the economic cycle five years from now?
Many experts also believe that 2027 will be a golden pit in the Kondratiev cycle. Is the investment guru playing a big game?
Is AI a trend or a trap?
This year, the AI boom has swept the globe, but Buffett does not plan to go all in.
He said that AI is not a focus for Berkshire's investments. If he had to choose, he would prefer the reinsurance industry.
Buffett reminded that chasing trends is not as good as finding areas you truly understand.
Why is investing in Japan so attractive?
Buffett's enthusiasm for investing in Japan remains strong, planning to continue increasing his holdings in Japan's five major trading companies, intending to hold them for over 50 years!
He said these investments perfectly align with Berkshire's long-term strategy.
Japan, in his eyes, is no longer synonymous with aging; the new generation of Japanese people is full of vitality, and the economic growth rate is impressive.
For example, when taking a taxi in Tokyo, you will find that most drivers are middle-aged, around 30-40 years old, with fewer elderly drivers.
Behind this is the optimization of Japan's population structure; a new cycle has already begun.
Is Buffett retiring? Who is the successor?
Buffett announced that he will step down as leader of Berkshire by the end of 2025 and will formally confirm this to the board on Sunday.
This is a bit sudden; he had previously stated that he had no retirement plans.
The successor is Vice Chairman Greg Abel, who has managed non-insurance businesses for many years. Everyone initially thought he would only take over after Buffett's passing.
Buffett emphasized that he will not sell Berkshire stock but will gradually donate his shares.
He also advised young people to associate with outstanding individuals; the people around you will influence your growth and decisions, helping you become better.